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PPL (PPL) Gains As Market Dips: What You Should Know

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PPL (PPL - Free Report) closed the most recent trading day at $29.35, moving +0.2% from the previous trading session. This change outpaced the S&P 500's 0.54% loss on the day. At the same time, the Dow lost 0.02%, and the tech-heavy Nasdaq lost 0.12%.

Coming into today, shares of the energy and utility holding company had lost 1.68% in the past month. In that same time, the Utilities sector lost 3.49%, while the S&P 500 lost 7.87%.

Wall Street will be looking for positivity from PPL as it approaches its next earnings report date. In that report, analysts expect PPL to post earnings of $0.29 per share. This would mark a year-over-year decline of 50.85%.

It is also important to note the recent changes to analyst estimates for PPL. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.44% higher within the past month. PPL currently has a Zacks Rank of #3 (Hold).

Investors should also note PPL's current valuation metrics, including its Forward P/E ratio of 19.1. This valuation marks a premium compared to its industry's average Forward P/E of 17.95.

The Utility - Electric Power industry is part of the Utilities sector. This industry currently has a Zacks Industry Rank of 84, which puts it in the top 33% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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